12 May DESCRIBE THE BUSINESS BENEFITS OF PARAMETER ESTIMATION.
You are a marketing analyst in a large grocery store chain. Yourjob entails developing a robust customer knowledge base utilizingthe companys vast database of in-store purchases. To date youhave been able to build a profile of your customer base drawinferences about different customer groupings and compare customerbehaviors across the different sales regions. Your task is to:Describe the business benefits of parameter estimation. Provideexamples of the type of parameters that might be of interest todecision makers in areas such as marketing. Elaborate on how beingable to estimate those parameters would benefit the quality of theresultant decisions. Describe the business benefits of drawinginferencesspecifically when it is advantageous to rely oninferences and what is required to ascertain the correctness ofinferences. Discuss the relationship between tests of differenceand hypothesis testing in the context of designing marketingpromotions.
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